Many types of position sensors are currently available for detecting linear and/or angular position. For high resolution position detection, conventional variable capacitance sensors may be used. Alternatively, linear variable transformers may be used, but these are generally expensive and bulky. Moreover, the associated temperature compensation of these prior art sensors can be difficult. In addition, such sensors are rendered useless by the presence of oil or cutting fluid on their active surfaces, and will not work when immersed in fluid.